Builders Supply and Salvage Company, Inc. v. Regions Bank

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REL: 9/10/10 Notice: T h i s o p i n i o n i s s u b j e c t t o formal r e v i s i o n b e f o r e p u b l i c a t i o n i n t h e advance s h e e t s o f Southern R e p o r t e r . R e a d e r s a r e r e q u e s t e d t o n o t i f y t h e R e p o r t e r o f D e c i s i o n s , Alabama A p p e l l a t e C o u r t s , 300 D e x t e r A v e n u e , M o n t g o m e r y , A l a b a m a 3 6 1 0 4 - 3 7 4 1 ( ( 3 3 4 ) 2 2 9 - 0 6 4 9 ) , o f a n y t y p o g r a p h i c a l o r o t h e r e r r o r s , i n o r d e r t h a t c o r r e c t i o n s may b e made b e f o r e t h e o p i n i o n i s p r i n t e d i n Southern R e p o r t e r . ALABAMA COURT OF CIVIL APPEALS SPECIAL TERM, 2010 2090467 B u i l d e r s Supply and Salvage Company, Inc. v. Regions Bank Regions Bank v. B u i l d e r s Supply and Salvage Company, Inc. Appeals from D a l l a s C i r c u i t (CV-08-2) Court On A p p l i c a t i o n f o r Rehearing 2090467 THOMAS, J u d g e . The opinion following of July i s substituted 9, 2010, i s withdrawn, and the therefor. T h i s a p p e a l a r i s e s from a d i s p u t e between B u i l d e r s Supply and S a l v a g e Company, I n c . ("BSC"), w h i c h for the construction o f a house, supplied and Regions materials Bank, which p r o v i d e d f i n a n c i n g f o r t h e c o n s t r u c t i o n o f t h e house. F a c t s and P r o c e d u r a l The pertinent contracted County. with facts Daryl a r e as used purchased G r i f f i n p a i d Cosby w i t h i n the construction the construction follows. Cosby t o c o n s t r u c t h a d o b t a i n e d f r o m R e g i o n s Bank. be History materials Jerome a house i n Dallas t h e p r o c e e d s f r o m a l o a n he Cosby p u r c h a s e d m a t e r i a l s t o o f t h e house from Griffin BSC o f t h e h o u s e was c o m p l e t e , on from BSC; credit. Cosby Before Cosby q u i t . Cosby p a i d f o r some, b u t n o t a l l , o f t h e m a t e r i a l s , i n c l u d i n g b r i c k and m o r t a r , t h a t he h a d p u r c h a s e d on c r e d i t f r o m BSC. BSC t h e n began t h e p r o c e s s o f r e t r i e v i n g unused b r i c k and m o r t a r t h a t C o s b y h a d p u r c h a s e d f r o m BSC f r o m t h e c o n s t r u c t i o n BSC n o t i f i e d G r i f f i n brick site. o f i t s i n t e n t i o n t o r e t r i e v e t h e unused and m o r t a r , which Griffin 2 was p l a n n i n g t o u s e on t h e 2090467 house. Subsequently, Regions Bank, [BSC] Rebekah Herman, t e l e p h o n e d BSC to please w o r k e d o u t , and and, a loan according officer t o BSC, for "asked n o t p i c k up t h e m a t e r i a l , t h a t t h i s w o u l d [BSC] w o u l d be p a i d . " that conversation, BSC suspended (Emphasis added.) be After i t s e f f o r t s to r e t r i e v e the b r i c k and m o r t a r . C o s b y owed $16,994.42 f o r t h e m a t e r i a l s he h a d p u r c h a s e d on credit f r o m BSC. Cosby, G r i f f i n , BSC Seeking to c o l l e c t t h a t d e b t , BSC and R e g i o n s Bank i n t h e D a l l a s C i r c u i t sued Court. asserted claims against a l l three defendants, seeking the amount o f t h e o u t s t a n d i n g d e b t owed f o r t h e m a t e r i a l s s o l d and d e l i v e r e d on c r e d i t and t h e i m p o s i t i o n o f a m a t e r i a l m a n ' s on t h e h o u s e . As g r o u n d s lien f o r r e l i e f a g a i n s t R e g i o n s Bank, BSC a s s e r t e d t h a t R e g i o n s Bank was e s t o p p e d t o deny t h a t i t was obligated that to repay the debt, Regions Bank had been u n j u s t l y e n r i c h e d , t h a t R e g i o n s Bank h a d b r e a c h e d an a g r e e m e n t t o p a y C o s b y ' s d e b t , and t h a t R e g i o n s Bank h a d c o m m i t t e d fraud by r e p r e s e n t i n g t h a t i t w o u l d p a y t h e f u l l amount o f t h e d e b t . The t r i a l for the full court entered amount of a d e f a u l t judgment a g a i n s t Cosby h i s debt t o BSC. After a t r i a l , t h e t r i a l c o u r t d i s m i s s e d BSC's c l a i m s a g a i n s t 3 nonjury Griffin, 2090467 entered a j u d g m e n t a g a i n s t R e g i o n s Bank on BSC's f r a u d and a w a r d e d BSC owed f o r t h e site when claim, $3,750 i n damages as c o m p e n s a t i o n f o r t h e d e b t unused b r i c k t h a t Cosby quit. r e a s o n e d t h a t BSC In remained at the i t s judgment, construction the trial court had r e l i e d on t h e s t a t e m e n t s made by Herman, as a r e p r e s e n t a t i v e o f R e g i o n s Bank, i n l e a v i n g t h e b r i c k m o r t a r on t h e t h a t the construction site. b r i c k was valued The trial a t $5,000 b u t court t h a t BSC and determined w o u l d have owed i t s b r i c k s u p p l i e r a r e s t o c k i n g f e e o f 25% f o r r e t r i e v i n g the b r i c k . Thus, t h e b r i c k l e s s 25%, of Regions j u d g m e n t a w a r d e d BSC i . e . , $3,750. The Bank on breach-of-contract BSC's trial court value of the found i n favor unjust-enrichment, estoppel, claims, the and specifically holding that S t a t u t e o f F r a u d s , § 8-9-2, A l a . Code 1975, "prevents by damages a w a r d e d its [BSC] fraud BSC of any ... sums" o t h e r filed increased mortar. and recovery on claim. a motion to alter w h i c h i t a r g u e d , among o t h e r be than the the The entered by $1, 464.75 trial an amend t h e judgment, t h i n g s , t h a t t h e damages to account court granted amended or the value should of the t h a t e l e m e n t o f BSC's m o t i o n judgment, 4 for in increasing the judgment 2090467 a g a i n s t R e g i o n s Bank t o $5,214.75. t o t h i s c o u r t , and R e g i o n s Bank BSC subsequently appealed cross-appealed. Analysis BSC a d v a n c e s f o u r a r g u m e n t s on a p p e a l : was unjustly enriched was c o m p l e t e d u s i n g m a t e r i a l s t h a t BSC on credit; because the estoppel theory; relied c o n s t r u c t i o n on had t h a t Herman's s t a t e m e n t s t o BSC f o r m a t e r i a l s s h o u l d be e n f o r c e d upon the house s u p p l i e d t o Cosby regarding payment a g a i n s t R e g i o n s Bank u n d e r an t h a t t h e a l l e g e d p r o m i s e s made by Herman BSC demonstrate that there was and a contract and R e g i o n s Bank, p u r s u a n t t o w h i c h , BSC asserts, R e g i o n s Bank a g r e e d t o pay C o s b y ' s d e b t f o r m a t e r i a l s supplied b e t w e e n BSC by t h a t R e g i o n s Bank on c r e d i t ; and t h a t R e g i o n s Bank, t h r o u g h Herman, f r a u d u l e n t l y misrepresented BSC had i t s i n t e n t i o n t o pay BSC s u p p l i e d t o C o s b y on I. Estoppel First, estoppel we and reject unjust the Unjust at end of conclusory s e n t e n c e and one Enrichment arguments enrichment. arguments that credit. and BSC's f o r the m a t e r i a l s its BSC on concerning advanced each of appellate citation. appeal brief Therefore, with BSC has c o m p l i e d w i t h t h e r e q u i r e m e n t s o f R u l e 2 8 ( a ) ( 1 0 ) , A l a . R. 5 those one not App. 2090467 P. "Rule 28(a)(10) r e q u i r e s t h a t arguments i n b r i e f s c o n t a i n d i s c u s s i o n s o f f a c t s and r e l e v a n t legal a u t h o r i t i e s that support the party's p o s i t i o n . I f t h e y do n o t , t h e a r g u m e n t s a r e w a i v e d . Moore v. P r u d e n t i a l R e s i d e n t i a l S e r v s . L t d . P ' s h i p , 849 So. 2d 914, 923 ( A l a . 2 0 0 2 ) ; A r r i n g t o n v . M a t h i s , 929 So. 2d 468, 470 n. 2 ( A l a . C i v . App. 2 0 0 5 ) ; Hamm v . S t a t e , 913 So. 2d 460, 486 ( A l a . C r i m . App. 2 0 0 2 ) . 'This i s so, because " ' i t i s n o t t h e f u n c t i o n o f t h i s C o u r t t o do a p a r t y ' s l e g a l r e s e a r c h o r t o make and a d d r e s s l e g a l a r g u m e n t s f o r a p a r t y b a s e d on u n d e l i n e a t e d g e n e r a l p r o p o s i t i o n s n o t s u p p o r t e d by sufficient a u t h o r i t y o r argument.'"' Jimmy Day P l u m b i n g & H e a t i n g , I n c . v . S m i t h , 964 So. 2d 1, 9 ( A l a . 2007) ( q u o t i n g B u t l e r v . Town o f A r g o , 871 So. 2d 1, 20 ( A l a . 2 0 0 3 ) , q u o t i n g i n t u r n Dykes v. Lane T r u c k i n g , I n c . , 652 So. 2d 248, 251 ( A l a . 1 9 9 4 ) ) . " White 1058 Sands G r o u p , L.L.C. v . PRS I I , L L C , 998 So. 2d 1042, ( A l a . 2008). appeal, we w i l l B e c a u s e BSC h a s w a i v e d t h o s e a r g u m e n t s on not decide w h e t h e r R e g i o n s Bank owes BSC t h e e n t i r e indebtedness under t h e t h e o r y of unjust enrichment or t h e t h e o r y o f e s t o p p e l . However, b e c a u s e R e g i o n s Bank a s s e r t s on cross-appeal was improper, that the t r i a l we will court's address j u d g m e n t o f $5,214.75 whether judgment c o u l d be a f f i r m e d on e i t h e r the t r i a l of those court's grounds. "'"One i s u n j u s t l y e n r i c h e d i f h i s r e t e n t i o n o f a b e n e f i t w o u l d be u n j u s t . " ' W e l c h v. Montgomery Eye Physicians, P.C., 891 So. 2d 837, 843 ( A l a . 2004)(quoting J o r d a n v. M i t c h e l l , 705 So. 2d 453, 458 ( A l a . C i v . App. 1 9 9 7 ) ) . The r e t e n t i o n o f a benefit i s unjust i f : 6 2090467 " ' " ( 1 ) t h e d o n o r o f t h e b e n e f i t ... a c t e d under a m i s t a k e of f a c t or i n m i s r e l i a n c e on a r i g h t o r d u t y , o r (2) t h e r e c i p i e n t o f the benefit ... engaged in some u n c o n s c i o n a b l e c o n d u c t , s u c h as fraud, coercion, or abuse of a confidential r e l a t i o n s h i p . In the absence of m i s t a k e or misreliance by the donor or w r o n g f u l c o n d u c t by t h e r e c i p i e n t , t h e r e c i p i e n t may have b e e n e n r i c h e d , b u t he i s n o t deemed t o have b e e n u n j u s t l y e n r i c h e d . " ' "Welch, 891 So. 2d a t 843 ( q u o t i n g J o r d a n , 705 So. 2d at 458). The success or failure of an u n j u s t - e n r i c h m e n t c l a i m depends on t h e p a r t i c u l a r f a c t s and c i r c u m s t a n c e s o f e a c h c a s e . [ A v i s R e n t A C a r S y s . , I n c . v.] H e i l m a n , [876 So. 2d 1111 ( A l a . 2003)]." M a n t i p l y v. M a n t i p l y , 951 So. 2d 638, 654-55 ( A l a . 2006) R e g i o n s Bank a r g u e s on c r o s s - a p p e a l t h a t t h e t r i a l c o u l d not have b a s e d enrichment because i t s j u d g m e n t i n f a v o r o f BSC t h e r e was no evidence to provided a benefit to Regions Bank a f t e r on u n j u s t establish v a l u e o f t h e a l l e g e d b e n e f i t t o R e g i o n s Bank. BSC it court argues relying the that on the a l l e g e d p r o m i s e made by R e g i o n s Bank. However, i t i s u n c l e a r whether R e g i o n s Bank r e t a i n e d t h e b r i c k s and m o r t a r and what b e n e f i t i t c o u l d have r e c e i v e d even i f i t h a d r e t a i n e d them. R e g i o n s Bank was BSC was the alleged t h e l e n d e r t o t h e p r o p e r t y owner, a creditor to the c o n t r a c t o r , promise, Cosby or G r i f f i n 7 Cosby. Griffin. At the time owned t h e b r i c k s of and 2090467 m o r t a r . No e v i d e n c e was p r e s e n t e d retained i n d i c a t i n g t h a t R e g i o n s Bank and made u s e o f t h e b r i c k s and m o r t a r or that the v a l u e o f G r i f f i n ' s m o r t g a g e i n c r e a s e d as a r e s u l t o f r e t a i n i n g t h e b r i c k s and m o r t a r . T h e r e f o r e , could the t r i a l court's n o t have been s u p p o r t e d by a c o n c l u s i o n Bank was u n j u s t l y that judgment Regions enriched. I n a d d i t i o n , t h e t h e o r y o f e s t o p p e l has no a p p l i c a t i o n t o the f a c t s of t h i s case. "A more d e t a i l e d s t a t e m e n t o f t h e g e n e r a l l y r e q u i r e d t o s u p p o r t an e s t o p p e l i n 3 Pomeroy, E q u i t y J u r i s p r u d e n c e § 805 1941): elements i s given (5th ed. " ' . . . 1 . T h e r e must be conduct--acts, language, or silence--amounting to a r e p r e s e n t a t i o n or a concealment of m a t e r i a l f a c t s . 2. These f a c t s must be known t o t h e p a r t y estopped at the time of h i s s a i d c o n d u c t , o r a t l e a s t t h e c i r c u m s t a n c e s must be such that knowledge of them is n e c e s s a r i l y i m p u t e d t o h i m . 3. The t r u t h c o n c e r n i n g t h e s e f a c t s must be unknown t o the other p a r t y c l a i m i n g the b e n e f i t of the e s t o p p e l , a t t h e t i m e when s u c h c o n d u c t was done, and a t t h e t i m e when i t was a c t e d upon by h i m . 4. The c o n d u c t must be done with the i n t e n t i o n , or at l e a s t with the e x p e c t a t i o n , t h a t i t w i l l be a c t e d upon b y the other party, or under such circumstances t h a t i t i s b o t h n a t u r a l and p r o b a b l e t h a t i t w i l l be so a c t e d u p o n . . . . 5. The c o n d u c t must be r e l i e d upon b y t h e o t h e r p a r t y , a n d , t h u s r e l y i n g , he must be l e d t o a c t upon i t . 6. He must i n f a c t a c t 8 2090467 upon i t i n s u c h a manner as t o change h i s p o s i t i o n f o r t h e w o r s e ; i n o t h e r w o r d s , he must so a c t t h a t he w o u l d s u f f e r a l o s s i f he were c o m p e l l e d t o s u r r e n d e r o r f o r e g o o r a l t e r what he has done by r e a s o n o f t h e f i r s t party being permitted to repudiate his conduct and to assert rights inconsistent with i t '" Mazer v. Jackson 1976)(first and Ins. last Agency, emphasis 340 So. added). r e s i d e n t s t h a t opposed a n n e x a t i o n 2d 770, 773 In Mazer, (Ala. a group into a municipality of relied on a n o n b i n d i n g r e s o l u t i o n , m i s r e p r e s e n t e d as b e i n g b i n d i n g on the residents, in withdrawing annexation. Although known the that the property resolution developers proposed their was opposition developers not may binding, the to not the have property t h e r e s o l u t i o n and p u r p o r t e d t o r e p r e s e n t t h e c i t y ' s p l a n n i n g c o m m i s s i o n . M a z e r , 340 So. 2d a t 773. In this Bank p u r p o r t e d to c a s e , BSC represent Cosby. relationship Griffin. C o s b y was it sold f a i l e d t o show t h a t R e g i o n s BSC with Regions Cosby; Bank did Regions not Bank have was a l s o f a i l e d t o show t h a t R e g i o n s any the bricks and mortar lender to Bank knew t h a t n o t g o i n g t o pay h i s d e b t . L a s t l y , BSC the business admitted that t o Cosby w i t h o u t retaining a s e c u r i t y i n t e r e s t i n t h e m a t e r i a l s . BSC d i d n o t have a u t h o r i t y t o c o n f i s c a t e t h e b r i c k s and m o r t a r . 9 Thus, BSC c o u l d n o t have 2090467 b e e n p l a c e d i n a w o r s e p o s i t i o n by l e a v i n g t h e u n u s e d and m o r t a r on G r i f f i n ' s court, therefore, support claims a that debt of trial Breach of Contract the alleged determination that o r i g i n a l agreement, the judgment o f the c a n n o t be b a s e d on t h e t h e o r y o f e s t o p p e l . II. BSC p r o p e r t y . The bricks promises Regions Bank made -- namely, Cosby Herman entered into not a c o l l a t e r a l agreement, another by an t o answer f o r and that such an a g r e e m e n t i s n o t b a r r e d by t h e S t a t u t e o f F r a u d s . R e g i o n s Bank a r g u e s t h a t any agreement, i f one existed, i s b a r r e d by the Statute of Frauds. The any trial claims Cosby's c o u r t found t h a t the S t a t u t e of Frauds b a r r e d premised debt. constituted on an The a promise alleged issue by promise whether Regions Bank t o pay Herman's t o pay w o u l d be r e v i e w e d u n d e r t h e o r e t e n u s s t a n d a r d . trial court hears ore tenus testimony, for a l l statements Cosby's debt "'"'[W]hen a i t s findings d i s p u t e d f a c t s a r e p r e s u m e d c o r r e c t and i t s j u d g m e n t b a s e d those findings will n o t be r e v e r s e d u n l e s s the on on judgment i s p a l p a b l y erroneous or m a n i f e s t l y u n j u s t . ' " ' " R e t a i l Developers of A l a b a m a , LLC v. E a s t Gadsden G o l f C l u b , I n c . , 985 10 So. 2d 2090467 924, v. 929 (Ala. 2007)(quoting Parks, other 977 cases). So. 2d 440, W a t e r Works & S a n i t a r y Sewer 443 However, t h e t h a t R e g i o n s Bank may Frauds i s reviewed ( A l a . 2007), i s s u e whether quoting any have made i s b a r r e d by in oral the Bd. turn promise Statute de novo, b e c a u s e t h e o r e t e n u s r u l e "'does not extend to c l o a k w i t h a presumption of c o r r e c t n e s s a trial j u d g e ' s c o n c l u s i o n s of law or the i n c o r r e c t a p p l i c a t i o n of to the f a c t s . ' " R e t a i l Developers, Waltman v. R o w e l l , Generally, promise another" by him to the answer unless thereunto 913 So. 985 2d 1083, So. 1086 2d a t 929 (Ala. S t a t u t e of Frauds v o i d s f o r the debt, default (quoting "[e]very special or miscarriage authorized in writing." § o u t s i d e the S t a t u t e of Frauds: " [ I ] n o r d e r t o d e t e r m i n e i f an a g r e e m e n t i s w i t h i n § 8-9-2(3) o r n o t i t must f i r s t be d e t e r m i n e d i f an agreement i s ' c o l l a t e r a l ' or ' o r i g i n a l ' i n n a t u r e . " ' " C o l l a t e r a l " agreements are those i n which the o b j e c t o f t h e p r o m i s e i s t o become t h e g u a r a n t o r o f a n o t h e r ' s d e b t ; t h e s e a r e w i t h i n t h e s t a t u t e and must be i n w r i t i n g t o be e n f o r c e a b l e . ' F e n d l e y [v. D o z i e r H a r d w a r e C o . ] , 449 So. 2d [1236] a t 1238 [(Ala. 1984)](quoting Herrington [v. C e n t r a l Soya 11 by 8-9-2(3). However, some p r o m i s e s t o a n s w e r f o r t h e d e b t o f a n o t h e r be of subscribed c h a r g e d t h e r e w i t h o r some o t h e r p e r s o n lawfully law 2005)). t h a t a g r e e m e n t i s " i n w r i t i n g and t h e p a r t y t o be of may 2090467 Co.], 420 So. 2d [1] a t 3 [(Ala. 1982)]). ' " O r i g i n a l " agreements a r e t h o s e i n which t h e e f f e c t of t h e promise i s t o pay t h e debt of another, b u t t h e o b j e c t o f t h e p r o m i s e i s t o p r o m o t e some p u r p o s e o f t h e p r o m i s o r . ' F e n d l e y , 449 So. 2d a t 1238 ( q u o t i n g H e r r i n g t o n , 420 So. 2d a t 3 ) . " Dykes R e s t . Supply, I n c . v. G r i m e s , (Ala. C i v . App. 1 9 8 5 ) . debt of another consideration Furthermore, which which i s based 481 So. 2 d 1149, 1151 "[a] promise upon i s beneficial a new t o pay t h e and valuable to the promisor i s not w i t h i n t h e s t a t u t e . " P h i l l i p s B r o k e r a g e v. P r o f e s s i o n a l P e r s . C o n s u l t a n t s , 517 So. 2d 1, 2 ( A l a . C i v . App. 1 9 8 7 ) . BSC a r g u e s t h a t R e g i o n s Bank made an o r i g i n a l to answer f o r Cosby's debt that i s outside agreement the Statute of F r a u d s . BSC b a s e s i t s argument on a l l e g e d s t a t e m e n t s b y Herman t h a t t h e " c o s m e t i c " v a l u e o f t h e h o u s e w o u l d be d i m i n i s h e d i f the unused bricks construction site. and BSC mortar contends were that retrieved because from the i t agreed t o l e a v e t h e b r i c k s a n d m o r t a r on t h e c o n s t r u c t i o n s i t e i n o r d e r t o s a t i s f y R e g i o n s Bank's d e s i r e f o r a c o s m e t i c a l l y a p p e a l i n g house, i t s forbearance created a new and valuable c o n s i d e r a t i o n t h a t was b e n e f i c i a l t o R e g i o n s Bank. T h e r e f o r e , according t o BSC, agreement t h a t f a l l s Regions Bank and BSC had an outside the Statute of Frauds. 12 original 2090467 However, t h e r e i s no evidence i n the BSC's a s s e r t i o n t h a t i t had an o r i g i n a l Bank. F i r s t , might Charles S t o u g h o f BSC not have mentioned telephone call. Second, reached the o p p o s i t e of about the the trial damages court awarded must to t e s t i f i e d that the trial by cosmetics" court on have [BSC] BSC's found, support agreement w i t h Regions "[Herman] during of any fraud after the indicated that i t c o n c l u s i o n by s t a t i n g t h a t " [ t ] h e Frauds prevents recovery than record ... claim. hearing Statute sums" other Thus, ore the tenus t e s t i m o n y , t h a t R e g i o n s Bank made a c o l l a t e r a l , r a t h e r t h a n original, within agreement the Statute determination trial in and of on t h i s that, Because the agreement Because the trial court's t o be t h a t any a g r e e m e n t was the collateral affirmed. a l l e g e d a g r e e m e n t was collateral claim i s precluded in nature, by t h e S t a t u t e of A l t h o u g h we a r e n o t p e r s u a d e d t h a t Herman's s t a t e m e n t " t h a t t h i s w o u l d be w o r k e d o u t " c o n s t i t u t e d a p r o m i s e , we not was i s s u e i s s u p p o r t e d by t h e e v i d e n c e , BSC's b r e a c h - o f - c o n t r a c t Frauds. the Frauds. court's determination n a t u r e i s due therefore, an decide that question to resolve a l l e g e d a g r e e m e n t t o answer f o r t h e 13 this case. need Because d e b t o f C o s b y was not the in 2090467 writing, Parker entered house i t would be v. W i l l i a m s , v o i d under 977 So. 2d 476, 480 of Frauds. ( A l a . 2007). See Cosby i n t o an agreement w i t h BSC t o o b t a i n m a t e r i a l s f o r t h e that Griffin extended G r i f f i n p a y Cosby. had hired a loan, to build. Regions Bank t h e p r o c e e d s o f w h i c h were u s e d t o Regions Bank cannot c o n t r a c t u a l d u t y t o p a y BSC the value him Thus, C o s b y , n o t R e g i o n s Bank, owed a d e b t t o BSC. Furthermore, be said to e i t h e r f o r the f u l l be under a debt or f o r o f t h e u n u s e d b r i c k and m o r t a r t h a t r e m a i n e d on t h e construction represented site an agreement a f t e r Cosby quit. Either alleged a p r o m i s e by R e g i o n s Bank t o answer o f Cosby. N e i t h e r Statute the Statute a l l e g e d p r o m i s e was promise f o r the debt in writing. Therefore, b a s e d on e i t h e r a l l e g e d p r o m i s e i s b a r r e d by t h e of Frauds. Parker, 977 III. Regions Bank argues So. 2d a t 480. Fraud in its cross-appeal that the s t a t e m e n t s made by Herman d u r i n g h e r t e l e p h o n e c a l l t o BSC d i d not c o n s t i t u t e a promise p a r t and t h a t t h e t r i a l agreement, i f one Cosby's debt i n f u l l c o u r t e r r e d i n a w a r d i n g BSC o f t h e b r i c k s and m o r t a r . any t o pay the or i n value R e g i o n s Bank f u r t h e r a r g u e s existed, i s barred 14 by the Statute that of 2090467 Frauds. BSC telephone c l a i m s t h a t t h e a l l e g e d p r o m i s e s made d u r i n g call c o n s t i t u t e an original agreement and not c o l l a t e r a l a g r e e m e n t t o answer f o r t h e d e b t o f a n o t h e r ; BSC argues, the agreement i s not barred by the the a thus, Statute of Frauds. The trial court entered a judgment a g a i n s t on BSC's f r a u d c l a i m b e c a u s e "[BSC] r e l i e d on representation and d i d n o t p i c k up R e g i o n s Bank p o i n t s o u t promissory-fraud fraudulent claim, t h a t the [ t h e b r i c k s and is an 2d 314, 316 essential that " m a t e r i a l e x i s t i n g f a c t . " S m i t h v. J.H. So. [Regions Bank's] mortar]." f r a u d c l a i m c o u l d o n l y be because misrepresentation R e g i o n s Bank ( A l a . 1988). I n s t e a d , i t must element of concern f u t u r e . See Parker v. Hook, 554 528 Herman's s t a t e m e n t s on So. 2d 382 ( r e c i t i n g the elements of p r o m i s s o r y f r a u d ) . appeal, be for a B e r r y R e a l t y Co., b e h a l f o f R e g i o n s Bank c o n s t i t u t e a p r o m i s e t o p e r f o r m an i n the a (Ala. Thus, on act 1989) cross- R e g i o n s Bank c o r r e c t l y a r g u e s t h a t a p r o m i s e f o u n d t o barred by the promissory operation Statute fraud. o f F r a u d s c a n n o t s u p p o r t an "[A]n oral promise that action i s void o f t h e S t a t u t e o f F r a u d s w i l l n o t s u p p o r t an action a g a i n s t t h e p r o m i s o r f o r p r o m i s s o r y f r a u d . " B r u c e v. C o l e , 15 by 854 2090467 So. 2 d 47, 58 ( A l a . 2 0 0 3 ) . "[T]he Statute of Frauds identifies defined categories of o r a l promises that are e s p e c i a l l y s u b j e c t t o f a b r i c a t i o n and e s p e c i a l l y unworthy o f r e l i a n c e or enforcement. Therefore, f o r the c o u r t s , on a t h e o r y o f p r o m i s s o r y f r a u d , t o c o u n t e n a n c e a p l a i n t i f f ' s c l a i m t h a t he h a s r e l i e d on s u c h a promise and t o r e d r e s s t h a t p l a i n t i f f ' s c l a i m t h a t he h a s s u f f e r e d f r o m t h e b r e a c h o f s u c h a p r o m i s e , d e f i e s t h e p o l i c y and f r u s t r a t e s t h e e f f i c a c y o f t h e Statute of Frauds." B r u c e , 854 So. 2d a t 58. Conclusion Because the Statute Regions Bank's a l l e g e d p r o m i s e s o f F r a u d s , Region Bank's a l l e g e d p r o m i s e s support a promissory-fraud the trial value court claim. i s reversed Therefore, under cannot t h e judgment o f i n s o f a r a s i t a w a r d e d BSC t h e o f t h e unused b r i c k and mortar a t t h e c o n s t r u c t i o n when C o s b y q u i t . all are void other The t r i a l respects, court t o enter court's and t h e cause site judgment i s a f f i r m e d i n i s remanded f o r t h e t r i a l a judgment c o n s i s t e n t w i t h t h i s opinion. APPLICATION GRANTED; OPINION OF JULY 9, 2 0 1 0 , WITHDRAWN; OPINION SUBSTITUTED; APPEAL AFFIRMED I N PART; REVERSED I N PART; AND REMANDED; CROSS-APPEAL -- REVERSED AND REMANDED. Pittman, Moore, a n d B r y a n , J J . , c o n c u r . Thompson, P . J . , c o n c u r s i n t h e r e s u l t , w i t h o u t w r i t i n g . 16

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